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Government Study Predicts America Could Run Out Of Money This Year

us debt government shutdown

The federal government of the United States could literally run out of money sometime in the next two months, Congressional Budget Office Director Elemendorf has warned [1]. The gloomy assessment also was made by the CBO in a recent study.

The $16.7 trillion federal debt ceiling – the amount of money that Uncle Sam can borrow under law — needs to be increased or the government will run out of cash, Elemendorf said. Congressional approval is needed to raise the debt ceiling.

The Republican-controlled House of Representatives is willing to raise the debt ceiling but only if the legislation raising the ceiling defunds Obamacare. The House even passed such a measure on Friday [2]. Democrats who control the Senate, though, say they will not go along with the measure – and even if they did, President Obama would veto it.

The government would run out of money sometime between the end of October and the middle of November, leading to default on its loans.

Current Federal Spending Unsustainable

The real problem identified by the CBO report is that the current level of federal spending is unsustainable, with the federal government spending more money than it brings in through taxes. It gets worse: The Congressional Budget Office [1] predicts that spending on health care and Social Security could double within 25 years.

“The unsustainable nature of the federal government’s current tax and spending policies presents lawmakers and the public with difficult choices,” CBO said. “To put the federal budget on a sustainable path for the long term, lawmakers would have to make significant changes to tax and spending policies.”

The United States apparently is entering into a period of permanent fiscal crisis that is threatening its economic future.

New book reveals how to keep this “gangster” economy from murdering your money… [3]

Government will run out of Money within Ten Days

President Obama has threatened to veto any measure that contains language that defunds the Affordable Care Act (Obamacare). The worst part of this dispute is its’ potential effect on the overall economy.

“Economists are warning that the danger of a government shutdown or debt default could seriously damage the U.S. economy,” Guardian journalist Paul Lewis wrote.

How the Budget Crisis can Harm Average People

There are several ways in which this fiscal crisis could theoretically harm average Americans. The impacts on average people could include: